Update June 21, 2010 - Unemployment in Las Vegas is still going UP! It came in at 14.1 percent - surpassing Michigan.
Now Las Vegas, besides having the highest homeless rate and foreclosure rate in the nation, it can now proudly boast of having the highest unemployment rate as well.
Las Vegas depends entirely on discretionary spending, and it will be the LAST to recover in this economy...maybe years from now.
And MGM Mirage/CityCenter has how many billions of dollars in debt?
Source:
http://www.lvrj.com/business/nevada-_x92-s-unemployment-rate-tops-in-nation-96647594.html
The foundation of Kirk Kerkorian, the billionaire businessman and philanthropist who is the largest shareholder of MGM Mirage, once made a $14 million gift to UNLV in honor of Senate Majority Leader Harry Reid (D-Nev), his friend of 40 years. But why?
And why in honor of Harry Reid? Maybe so that the MGM could eventually rid itself of the costly burden of providing healthcare to it's employees through the Culinary Union by instead, opting for the government's "public option". Does anyone still remember Kerkorian's huge efforts to keep out the Union when he first opened his flagship property, the MGM Grand? And was Kirk also trying to "butter-up" his "friend" Harry Reid to fight any future attempts to raise the casino's gaming taxes to help offset delining tax revenues? (Las Vegas casinos pay the lowest gaming tax in this country, maybe the world.) We will never know what goes on behind closed doors unless we're a fly on the wall (or a well-hidden FBI microphone).
Senate Majority Leader Sen. Harry Reid, D-Nev (left) and Kirk Kerkorian (right) attend the Oscar De La Hoya and Floyd Mayweather Jr. boxing match at the MGM Grand Garden Arena in Las Vegas (Rare photo of Harry smiling).
Never under-estimate Kirk Kerkorian...he is a very shrewd business man, and though some of his efforts appear philanthropist on the outside, I believe them to be more self-serving in the longer term. The man plans ahead and tries to anticipate the changing political and financial environment well in advance...using the same strategies that a sly and well-practiced chess player might.
You might also be asking yourself about his friendship to Harry Reid, an extreme liberal tax-and-spend Democrat that is anti-capitalist and anti-business. Why does Kirk keep rolling over for the government and kissing up to radical politicians with left-wing ideologues? After all, Kirk's a businessman, right? Maybe it's because Kirk uses the old mantra, "Keep your friends close, but keep your enemies closer."
Just one of many examples of his exceptional prowess: The smoking restrictions and bans imposed on casinos through (Constitutionally illegal?) State and local government regulations.
Even though recent studies indicate that second-hand smoke is less harmful than previously exaggerated, and that smokers spend much more on gaming than non-smokers, Kerkorian has brilliantly balanced this precarious tight-wire act by attempting to appease both sides of these issues (rather than confront and isolate either group) - - - by installing expensive (yet, unproven) cutting-edge technology filter air systems to minimize second-hand smoke in CityCenter (thereby making it "Obama Green"); but when allowed to by law, increasing the smoker-friendly gaming areas in his casinos to increase revenues. Brilliant!
As an aside: Why do casinos settle lawsuits with dealers who clearly accept the terms and conditions of employment on their job applications (regarding smoke in the casino area), rather than taking them head-on for breaking their contract with the casino? These dealers (and others) deny employment to others that would be more appreciative of their jobs.
But despite this, Mister Kerkorian is a very wise man indeed - you have to admire him. Now, if only he would hire me instead of telling his Human Resource people to only hire "young and attractive people" for frontline positions such as bartenders, dealers, and cocktail servers. Why can't "older people" like himself (meaning me) have the means to make a living as well? (continued below)
Get to know the casino bosses - who they are and what they do.
Bob Stupak's excesses are especially noteworthy. He has twice lost campaigns to be mayor, won a $1 million bet on the Super Bowl, paid $100,000 to play for two minutes with the Harlem Globetrotters, and chummily refers to
Mob figures. |
Steve Wynn is the former owner of the MGM's
Mirage - but how did he gain and wield his tremendous power in Nevada? And why did a confidential Scotland Yard report prevent him from opening a casino in London? |
Kirk Kerkorian, Gary Loveman, Steve Wynn,
: Binkley offers plenty of nuggets mined from her years on the beat, producing a full, flashy tale of powerful men and their pride, vanity, envy, greed and all the other cardinal no-nos that earned Vegas the name Sin City.
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Also, a lawsuit has commenced in District Court in Nevada on behalf of purchasers of MGM Mirage stock during the period between August 2, 2007 and March 5, 2009 (MGM traded at $75.81 a share on August 3rd 2007 and by March 5th 2009, it was trading at the all-time low of $1.89 a share - currently MGM is billions in debt while trying to open CityCenter).
The complaint alleges that during that period MGM made materially false and misleading statements concerning MGM's financial strength, liquidity and the prospects for the development of MGM's CityCenter. This caused MGM's common stock price to be artificially inflated, allowing MGM insiders to sell close to $90 million worth of MGM stock at higher prices than they would otherwise have obtained. As the true facts about MGM's deteriorating financial condition and the company's inability to fund the CityCenter project leaked into the market, the inflation in the price of MGM stock was removed, causing damages to common stockholders. (Say it ain't so Kirk!)
I didn't mention the share dilution in May 2009, which MGM used to raise additional capital that devalued MGM share price from $13.10 to $7.67 a share. A private offering of $1.5 billion total: Senior secured notes and an underwritten public offering of more than $1 billion of common stock. Kerkorian bought $100 million worth of MGM stock at $7 a share. Today MGM is trading at $8.58 a share.
Mister Kerkorian is a very wise man indeed.
Other MGM Mirage Posts
MGM MIrage - Illegal Hiring Practices?
http://tobuds.com/blogs/blog2.php/2010/03/12/mgm-mirage-illegal-hiring-practices
MGM MIRAGE (NYSE: MGM) - Living on a Prayer in 2010 (Despite "Upgrade")
http://tobuds.com/blogs/blog2.php/2010/01/13/mgm-mirage-nyse-mgm-living-on-a-prayer-i
Casinos Won't Recover - What it Means for MGM Mirage
http://tobuds.com/blogs/blog2.php/2010/01/11/casinos-won-t-recover-what-it-means-for
MGM Mirage on Life Support - 2010 Not a Happy New Year
http://tobuds.com/blogs/blog2.php/2010/01/07/mgm-mirage-on-life-support-2010-not-a-ha
MGM Mirage - City Center is Doomed in 2010 to Cannibalism
http://tobuds.com/blogs/blog2.php/2009/12/31/mgm-mirage-city-center-is-doomed-to-cann
James "Jimmy" Murren - CEO MGM Mirage, Has A Magic Dream
http://tobuds.com/blogs/blog2.php/2009/12/29/james-jimmy-murren-ceo-mgm-mirage-has-a
MGM's Kirk Kerkorian's CEO (Jim Murren) - A Con Artist?
http://tobuds.com/blogs/blog2.php/2009/12/21/james-j-murren-chairman-of-the-board-and
MGM's Mister Kerkorian is a Very Wise Man
http://tobuds.com/blogs/blog2.php/2009/12/21/mgm-s-mister-kerkorian-is-a-very-wise-ma
Also see > CityCenter, Infinity World Development, MGM Mirage, Tracinda, Kerkorian
Smoking Bans in Casinos
http://tobuds.com/blogs/blog2.php/2009/12/21/regarding-smoking-bans-in-casinos
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